Australia home prices rise in April for second consecutive month

Australian home prices rose for a second straight month in April, data showed, in a further signal that the nation’s property market may have hit a floor ahead of a central bank rate decision on Tuesday (May 2).

Figures from property consultant CoreLogic showed that prices nationally rose 0.5 per cent in April from March, when values were up 0.6 per cent, indicating that Australian home prices may have bottomed out after slumping 9.1 per cent from May 2022 to February.

CoreLogic research director Tim Lawless said prices were “stabilising or rising” across most parts of Australia.

Sydney, the capital of Australia’s most populous state New South Wales, led the way in April, with prices rising 1.3 per cent, while in the capital of Victoria state, Melbourne, they ticked up 0.1 per cent, the data indicated.

Adding to improved prospects for the housing market, the Reserve Bank of Australia (RBA) is tipped to hold its interest rate unchanged on Tuesday for a second straight monthly meeting, a Reuters poll of economists showed last week.

More than 75 per cent of economists polled in the survey said the RBA would keep its tightening campaign paused after hiking rates by 350 basis points since last May to curb red-hot inflation.

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While the annual inflation rate eased from 7.8 per cent to 7 per cent in the March quarter, it was still well above the central bank’s target range of 2 per cent to 3 per cent. The RBA could consider raising rates again in coming months if elevated inflation persisted, economists said.

Even so, Lawless said as interest rates looked more stable there was a good chance consumer sentiment would improve, boosting housing purchases and sales. “Other indicators are confirming the positive shift,” he added. “Auction clearance rates are holding slightly above the long-run average, sentiment has lifted and home sales are trending around the previous five-year average.” REUTERS